Mr. John Bossio reports

CMC METALS LTD. ACQUIRES THE SILVER-GOLD POLYMETALLIC GAVILANES PROJECT IN SAN DIMAS DISTRICT, DURANGO, MEXICO

Sailfish Royalty Corp. has entered into a share purchase option agreement with CMC Metals Ltd. that grants the option to acquire all of the issued and outstanding shares of Swordfish Silver Corp. Swordfish, through Sailfish de Mexico SA de CV, holds the mineral rights of the Gavilanes silver exploration property located in the Municipality of San Dimas, State of Durango, Mexico. The terms of this agreement were previously announced in a press release dated Dec. 21, 2023, with a majority of the financial commitments in the backend of the multiyear deal. The deal is also subject to exchange approval.

The silver-gold polymetallic Gavilanes project (13,594.5 hectares) has a current National Instrument 43-101 inferred resource of 18,174,000 contained silver equivalent (AgEq) ounces at an average grade of 320.3 g/t AgEq within 1,765,000 tonnes (Mine Development Associates/Respec Resource Gesociences Inc., 2021). The metal prices assumed in the resource estimate were $19 (U.S.) per ounce (oz) silver, $1,600 (U.S.) per oz gold, $3.50 (U.S.) per pound (lb) copper and $1 (U.S.) per lb for lead and zinc.

Gavilanes is a low-to-intermediate-sulphidation epithermal deposit and is located in the Sierra Madre occidental province in southwestern Durango. Limited drilling at the site has been completed over 0.2 square kilometre of veins. Gavilanes has been subjected to periodic episodes of drilling totalling 61 diamond drill holes (13,011.25 metres). A majority of the drilling (47 holes) was completed by Santa Cruz Silver Mining. The drilling focused on the Guadalupe Solitude structure along only 500 metres. The San Nicolas mineralized structures, which span 2.6 kilometres, have only been tested over 250 metres with drilling intersecting an important gold system that was later confirmed with mapping and surface sampling.

Highlights of some previous intersections from historical drilling efforts include:

• SCSN-01: eight metres 155 grams per tonne (g/t) silver;
• SCSN-04: 17.8 metres of 465 g/t silver;
• SCSN-05: 2.4 metres of 6.75 g/t gold;
• SCGP-02: 4.25 metres of 233 g/t silver and 0.33 g/t gold;
• SCGP-11: 4.8 metres of 616 g/t silver;
• SCGP-12: four metres of 243 g/t silver;
• SCGP-15: 3.4 metres of 298 g/t silver;
• SCGP-22: 3.3 metres of 2,540 g/t silver;
• SCGP-26: 8.6 metres of 409 g/t silver;
• SCHN-12: 6.3 metres of 2,016 g/t silver and 0.16 g/t gold.

Initial drilling will focus on further extensions of the San Nicolas vein, Descubridora, Veta Del Pueblo and Guadalupe-Soledad veins. Average veins encountered to date are approximately three metres in width and typical contain varying amounts of silver, gold, copper, lead and zinc.

Recent mapping efforts by Sailfish identified more than 20 veins covering an area in excess of 15 square kilometres approximately with strike lengths estimated in excess of two kilometres. Preliminary sampling of a majority of the veins has indicated that they are mineralized. Highlights of the surface sampling include:

• Sample 43038, Veta Del Pueblo: one metre grading 1,867 g/t silver;
• Sample 43235, Descubridora vein: two metres grading 24.4 g/t gold and 44.5 g/t silver;
• Sample 45352, San Nicolas vein: 1.5 metres grading 6.07 g/t gold and 201 g/t silver;
• Sample 45331, San Nicolas vein: one metre grading 30 g/t gold, 190 g/t silver.

Key points arising from these results are:

• They demonstrate the potential for very large areas of prospectivity on the main vein structures outside of areas subjected to historical drilling.
• The potential for significant gold mineralization especially in the southeastern extensions of the veins which are exposures of the deeper parts of the veins.
• These sample results do not include other sample results on new veins identified and/or areas immediately outside of the core Gavilanes zone.

It is also highly probable that the identified volume of mineralized veins will be increased by drilling the dip and strike extensions of the partly drill tested Gavilanes zone and early-stage detailed mapping of the Central and Western zones.

Thirty-seven of the Santa Cruz drill holes were used to derive the resource estimate. Sailfish subsequently logged and assayed the remaining ten holes not included in the current resource estimate. Therefore, after the initial round of drilling it is the company's intent to incorporate these holes and new drilling results into a revised resource estimate in late Q4 2024/early Q1 2025. Gavilanes is located only 23 km northeast of the San Dimas/Tayoltita mine operated by First Majestic Silver Corp. and shares many geological and mineralogical similarities with the mine deposit.

Descriptions of the property potential are included within various technical reports and recent studies which will be placed on the company website.

Kevin Brewer, president and chief executive officer of the company, noted: "Gavilanes is a transformational transaction. It is a major asset with immense exploration potential that provides the opportunity for significant growth of the company in 2024 and beyond. To acquire a permitted project with a solid resource base, extensive mineralized veins in three mineralized zones covering an area over 20 square kilometres, and potential to demonstrate an expansion of the resource in the near term with past and proposed drilling, is quite an astounding feat for CMC. We plan to initiate drilling at Gavilanes in April, 2024."

The project has a drill permit from Semarnat to complete up to 4,650 metres of drilling. Plans are under way to complete 3,000 metres of stepout drilling from the identified resource as recommended by the 2021 NI 43-101 study. Phase 2 of the project envisions an additional 15,000 metres of diamond drilling targeted at a resource expansion program and proposes to conduct drilling during that program in all three mineralized zones on the property, including the Gavilanes, Central and Western Zones.

Surface rights in the core area are held by the Ejido Los Gavilanes, a communal agrarian co-operative that has established exploration agreements with previous operators. The company has already had met with the Ejido and has initiated negotiations for an exploration agreement which they hope will be concluded in the next couple of months.

Qualified person

Qualified person Mr. Brewer, a registered professional geoscientist, is the company's president and chief executive officer, and qualified person (as defined by National Instrument 43-101). He has given his approval of the technical information pertaining reported herein. The company is committed to meeting the highest standards of integrity, transparency and consistency in reporting technical content, including geological reporting, geophysical investigations, environmental and baseline studies, engineering studies, metallurgical testing, assaying and all other technical data.

About CMC Metals Ltd.

CMC Metals is a growth-stage exploration company focused on opportunities for high grade polymetallic deposits in Mexico, Yukon, British Columbia and Newfoundland.

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